What's the story

Cristina Balan, a former engineer at Tesla, has won a significant round in her ongoing legal battle against the company and its CEO Elon Musk.

The dispute dates back to 2014, when Balan flagged safety concerns over a potential design flaw in the braking system of Tesla cars.

After she was fired and won a wrongful termination case, she filed a defamation lawsuit against the company in 2019, which has now been revived by a California appeal court.

Proceedings

Legal journey and Tesla's allegations

Balan, whose initials were once engraved on batteries of Model S vehicles, has been involved in a protracted legal battle since her firing.

She claimed she was worried carpets were curling beneath pedals in some cars, creating safety hazards. However, managers refuted her concerns and she lost her job.

Balan initially won a wrongful termination case but Tesla accused her of misusing company resources for a "secret project," something she always denied.

In 2019, she sued the firm for defamation.

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Court decision

Appeals court rules in Balan's favor

After Balan sued, a district court ruled that her case should be settled through arbitration owing to a contract she signed while working for Tesla.

The arbitrator ruled in favor of the company and Musk, dismissing her claims under California's statute of limitations.

However, the US Court of Appeals for the Ninth Circuit quashed the district court's confirmation of the arbitration award, and ruled in...

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